South African Airways (SAA) and Air Tanzania signed a deal on Monday whereby the South African national carrier will acquire a 49% stake in the East African airline.
The signing ceremony was attended by officials from the Tanzanian and South African governments. Both governments hold the majority stake in their respective airlines.
Of the $20-million (R185,2-million) SAA paid, $10-million (R92,6-million) would cover the cost of acquiring the 49% stake while a further $10-million would be used to recapitalise the new company.
SAA CEO Andre Viljoen told those attending the ceremony in Tanzania that the partnership offered potential for the growth of both parties.
”I would like to welcome Air Tanzania to the SAA family. This partnership does not only offer opportunities for growth, but also for establishing a strong and reliable presence in East Africa.
”We are extending our wings to cover the African sky and other regions of the world in line with continuing our expansion policy and strategy of networking Africa,” he said.
”This initiative is closely aligned to the objectives of the New Partnership for Africa’s Development (Nepad),” he said.
Viljoen said SAA would send an interim management team to help establish the new company.
”For an initial period, SAA will manage the new airline while suitable candidates to manage the new company are being sought.” – Sapa